Project Management

1. What is a Project?
1. A project is any sort of planned undertaking

All of us have been involved in projects, whether they be our personal projects or in business and
industry. Examples of typical projects are for example:

 Personal projects:

o obtain an MBA

o write a report

o plan a wedding

o plant a garden

o build a house extension

 Industrial projects:

o construct a building

o provide a gas supply to an industrial estate

o build a motorway

o design a new car

 Business projects:

o develop a new course

o develop a computer system

o introduce a new product

o prepare an annual report

o set up a new office

Projects can be of any size and duration. They can be simple, like planning a party, or complex
like launching a space shuttle.

Generally projects are made up of:

 a defined beginning,
 multiple activities which are performed to a plan,
 a defined end.

Therefore a project may be defined as a means of moving from a problem to a solution via a
series of planned activities.

 A project is a means of moving from a problem to a solution via a series of planned

activities.
 A project has a definite beginning and end.
 Projects consist of several activities.

Two essential features are present in every project no matter how simple or complicated they
are. In the first place, all projects must be planned out in advance if they are to be successfully
executed. Secondly, the execution of the project must be controlled to ensure that the desired
results are achieved.

On most projects it is possible to carry out multiple activities simultaneously. Usually it is

possible to perform several activities at the same time, however there will be activities which
cannot begin until a preceding activity has been completed. Such relationships are referred to as
dependencies or precedencies, and when planning a project it is important to establish the order
of precedence of dependent activities, and to establish those activities which can be performed in
parallel with other activities.

Regardless of the nature or size of your project a successful outcome can only be achieved by
using sound project management techniques. The most widely used and popular methods of
project management are Gantt Charts, Critical Path Method (CPM) and Programme Evaluation
and Review Technique (PERT). However, it is important to remember that projects are carried
out by people, and the human aspects of project management are critical for the project
success.

Uniqueness of IT projects
 While IT projects are similar in some ways to other types of projects, they pose unique
challenges for the managers and organizations that undertake them. IT project management is
particularly challenging because of several factors including: (1) the rapid pace of
technological changes occurring in the IT field, (2) the invisible nature of software, (3) the
ever-present pressure to add new features and functionality to systems, and (4) the difficulty
of managing the organizational changes that accompany most IT implementations. In spite of
the advanced technology that surrounds computer-based information systems, IT project
management in most organizations is not very disciplined.

2. Terminology and Definitions

A project is an interrelated set of activities that has a definite starting and ending point and
results in the accomplishment of a unique, often major outcome. "Project management" is,
therefore, the planning and control of events that, together, comprise the project. Project
management aims to ensure the effective use of resources and delivery of the project objectives
on time and within cost constraints.

An activity or task is the smallest unit of work effort within the project and consumes both time
and resources which are under the control of the project manager. A project is a sequence of
activities that has a definite start and finish, an identifiable goal and an integrated system of
complex but interdependent relationships.

A schedule allocates resources to accomplish the activities within a timeframe. The schedule
sets priorities, start times and finish times.

Project management is:

the adept use of techniques and skills (hard and soft) in planning and controlling tasks and
resources needed for the project, from both inside and outside of organisation, to achieve
results.

The purpose of project management is to achieve successful project completion with the
resources available. A successful project is one which:

 has been finished on time

 is within its cost budget
 performs to a technical/performance standard which satisfies the end user.

3. The Attributes of Successful Project Management

The effectiveness of project management is critical in assuring the success of any substantial
undertaking. Areas of responsibility for the project manager include planning, control and
implementation. A project should be initiated with a feasibility study, where a clear definition of
the goals and ultimate benefits need to be established. Senior managers' support for projects is
important so as to ensure authority and direction throughout the project's progress and, also to
ensure that the goals of the organization are effectively achieved within this process. The
particular form of support given can influence the degree of resistance the project encounters.

Knowledge, skills, goals and personalities are all factors that need to be considered within
project management. The project manager and his/her team should collectively possess the
necessary and requisite interpersonal and technical skills to facilitate control over the various
activities within the project.

The stages of implementation must be articulated at the project planning phase. Disaggregating
the stages at its early point assists in the successful development of the project by providing a
number of milestones that need to be accomplished for completion. In addition to planning, the
control of the evolving project is also prerequisite to success. Control requires adequate
monitoring and feedback mechanisms by which senior and project managers can compare
progress against initial projections at each stage of the project. Monitoring and feedback also
enables the project manager to anticipate problems (e.g.: the knock-on effects of late start or
finish times) and therefore take pre-emptive corrective measures for the benefit of the project
overall.

Projects normally involve the introduction of a new system of some kind and, in almost all cases,
new methods and ways of doing things. This impacts upon the work of others: the "users". User
consultation is an important factor in the success of projects and, indeed, the degree of user
involvement can influence the extent of support for the project or its implementation plan. A
essential quality of the project manager is that of being a good communicator, not just within the
project team itself, but with the rest of the organization and outside bodies as well (the users
may be internal or external).

1. Features of projects

 Projects are often carried out by a team of people who have been assembled for that
specific purpose. The activities of this team may be co-ordinated by a project manager.
 Project teams may consist of people from different backgrounds and different parts of
the organisation. In some cases project teams may consist of people from different
organisations.
 Project teams may be inter-disciplinary groups and are likely to lie outside the normal
organisation hierarchies.
 The project team will be responsible for delivery of the project end product to some
sponsor within or outside the organisation. The full benefit of any project will not
become available until the project as been completed.
In recent years more and more activities have been tackled on a project basis. Project teams
and a project management approach have become common in most organisations. The basic
approaches to project management remain the same regardless of the type of project being
considered. You may find it useful to consider projects in relation to a number of major
classifications:

a) Engineering and construction

The projects are concerned with producing a clear physical output, such as roads, bridges
or buildings. The requirements of a project team are well defined in terms of skills and
background, as are the main procedures that have to be undergone. Most of the problems
which may confront the project team are likely to have occurred before and therefore
their solution may be based upon past experiences.

b) Introduction of new systems

These projects would include computerisation projects and the introduction of new
systems and procedures including financial systems. The nature and constitution of a
project team may vary with the subject of the project, as different skills may be required
and different end-users may be involved. Major projects involving a systems analysis
approach may incorporate clearly defined procedures within an organisation.

c) Responding to deadlines and change

An example of responding to a deadline is the preparation of an annual report by a

specified date. An increasing number of projects are concerned with designing
organisational or environmental changes, involving developing new products and
services.

Activity

Consider this last category. Can you think of any examples where your organisation needs to
respond to change and a project management approach may be valid?

4. Responsibilities of the Project Manager

1. To plan thoroughly all aspects of the project, soliciting the active involvement of all
functional areas involved, in order to obtain and maintain a realistic plan that satisfies
their commitment for performance.
2. To control the organization of manpower needed by the project.
 3. To control the basic technical definition of the project, ensuring that "technical" versus
"cost" trade-offs determine the specific areas where optimisation is necessary.
4. To lead the people and organizations assigned to the project at any given point in time.
Strong positive leadership must be exercised in order to keep the many disparate
elements moving in the same direction in a co-operative.
5. To monitor performance, costs and efficiency of all elements of the project and the
project as a whole, exercising judgement and leadership in determining the causes of
problems and facilitating solutions.
6. To complete the project on schedule and within costs, these being the overall standard by
which performance of the project manager is evaluated.

1. Why do projects go wrong?

There can be many reasons why projects go wrong. The most common reasons are as follows:

a. Project goals are not clearly defined

b. There can be constraints on the completion of projects arising from the different
objectives of:

 Short time scale

 Resource availability
 Quality factors
 Human factors

1. Problems with Project Goals

 The project sponsor or client has an inadequate idea of what the project is about at the
start.
 There may be a failure of communication between the client and the project manager.
These may be due to a lack of technical knowledge on the part of the client or an overuse
of jargon by the project manager.
 Specifications may be subject to constant change. This may be due to problems with
individual clients, decision making processes at the client end, or environmental
changes. For example the government may change the basic "rules of the game" before
the completion of the project.
  The project goals may be unrealistic and unachievable, and it may be that this is only
realised once the project is under way.
 The client may become carried away with the idea of the project and may be unable to
see clearly what can be achieved.
 Projects may be highly complex and may have a number of objectives that actually
contradict each other.

There are perhaps two stages which can help in ensuring that goals are properly defined and
achievable:

a. Ensuring that the client specification is clear and understandable. To do this you must
first of all establish the objectives of the project. It would help to ask the following
questions:

 What is it that the organization is setting out to achieve or is being asked to achieve?

 Will the suggested project fulfil these objectives?

 Have all the alternatives been considered and is the chosen option the best one available?
 Have the full effects of the project, both inside and outside the organisation, been
considered?

b. Preparation of a Project overvies (Project brief). The brief should take the objectives set
out in the previous exercise and translate them into targets and goals. Any key
constraints should also be identified and stated at this stage. This brief should be agreed
by the sponsor/client and communicated to the project manager. Any ambiguities or
queries should be sorted out as soon as possible.

A good way forward would be through the establishment of success criteria for the project. If
you want the project to succeed (and who doesn't?), then you have to know when you have
succeeded.

Success criteria can be described as being hard or soft:

 Hard criteria are often the most obvious criteria that are tangible and measurable and
can be expressed in quantitative terms. They tend to pose the question "what?", that is
"what should be achieved?"
 Soft criteria are usually less obvious, but not necessarily less important. They are often
intangible and qualitative. Consequently they may be difficult to measure. They would
tend to ask the question "how?"
 a. Hard criteria

 Performance specifications: these may be set out in terms of the ability to deal with
certain demands. For example, this could be throughput of traffic, number of patients,
volume of transactions processed or the number of enquiries dealt with.

 Specific quality standards: this could relate to technical standards and tolerance, or may
be the achievement of a favourable report from an outside inspection agency.
 Meeting deadlines: this is probably the most obvious one of them all where projects need
to be completed within a given time scale. For example, a new system may need to be
implemented ready for the start of the financial year, or a new development may have to
meet time requirements as laid down in contract specifications.
 Cost of budget constraints: an important criterion may be to complete the project within
a cost limit or budget which has been determined. Additionally there may be
requirements in terms of the ongoing cost of the completed project. For example, a new
system may be required to make savings for the organisation on a continuing basis.
 Resource constraints: there may be other resource constraints such as making use of
existing premises or labour force.

As you can see, the above criteria are relatively easy to establish and should also be quite easy to
specify in a project brief.

b. Soft criteria

 Demonstrative co-operation: this would be about showing that the project team could
work together effectively and without a degree of conflict. It could be an important
consideration to develop and implement solutions for the organisation which have a wide
element of consensus and stem from a co-operative attitude.

 Presenting a positive image: this may also be important but obviously can be difficult or
impossible to quantify.
 Achieving a total quality approach: this would be more about the adoption of a
philosophy of continuous improvement than the achievement of specific performance
targets on quality.
 Gaining total project commitment: this is again about how the project is managed and
the attitude of the project team to it.
 Ensuring that ethical standards are maintained: it can be very important to ensure that no
corners have been cut that should not have been and that professional standards of ethics
have not been breached.
  Showing an appreciation of risk: this would ensure that no unacceptable risks were taken
in the pursuit of other project objectives. Again this is about how the project is
developed rather then the end product itself.

3. Constraints on the completion of projects

a. Time

Our definition of a project stated that it was an activity which had a defined beginning and
ending point. Most projects will be close-ended in terms of there being a requirement for
completion by a certain point in time. This point may be the result of an external factor such as
new legislation, or may be derived from organisational requirements. It may also be partly
determined by other constraints. There is likely to be some relationship between the time taken
for a project and its cost. A trade-off between the two constraining factors may then be
necessary.

b) Resource Availability

There is likely to be a budget for the project and this will clearly be a major constraint. Cost
constraints may be set in a number of ways, for example as an overall cash limit or as a detailed
budget broken down over a number of expenditure headings. Labour resources in particular may
be a limiting factor on the completion of the project. In the short run it is likely that labour will
be fixed in supply. Whilst the overall resource available may in theory be sufficient to complete
the project, there may be difficulties arising out of the way in which the project has been
scheduled. That is, there may be a number of activities scheduled to take place at the same time
and this may not be possible given the amount of resources available.

c) Quality factors

Whether the project delivers the goods to the right quality.

There are techniques which can be used to overcome the problems referred to above. These
include:

 Budgeting, and the corresponding control of the project budget through budgetary
control procedures.
 Project planning and control techniques such as Gantt charts and network analysis.

An important point to note at this stage is how the various constraints on project completion are
likely to be interlinked with each other. For example, problems with time constraints or resource
constraints may be overcome by spending more through working overtime, employing more
people or purchasing better machines. Budget problems may have a knock-on effect on the
achievement of deadlines.
It is important to remember that while project management techniques are important, they tend
to understate the importance of the key resource: people. In a fact changing environment where
tasks are often difficult, controversial with uncertain outcomes, "people management" skills are
called for.

Summary

A project should possess identifiable goals and a definite starting and finishing point.

Project goals must be defined clearly. A useful checklist can be developed in relation to success
criteria. Criteria may be hard and concerned with what the project should achieve, or soft when
they will cover how the project should proceed.

The major constraints on the completion of projects are Time, Resource Availability and the need
to achieve the required standard of performance for the project.

2. THE PROCESS OF PROJECT MANAGEMENT

1. Project Planning

A major decision at the outset of any project is to decide upon the organization and composition
of the project team. In so doing, it is worth remembering that many members will have dual
responsibilities of involvement in the project in addition to a commitment to other projects or
management of a functional area on a day-to-day basis. It is at this stage that a project manager
should be appointed and responsibilities made explicit for all members of the team.

The selection of the team will be dependent upon the skill requirements of the project, and upon
the matching of those skills to those possessed by individual members of the team. There may
be a conflict here with hierarchical status.

The project management team will, therefore, begin its task in advance of project proper so
that a plan can be developed. An important first step is to set the objectives and then define the
project, breaking it down into a set of activities and related costs. It is probably too early to
determine exact resource implications at this stage, but expected requirements for people,
supplies and equipment should at least be estimated during the planning stage.

2. Project Scheduling
This phase is primarily concerned with attaching a timescale and sequence to the activities to be
conducted within the project. Materials and people needed at each stage of the project are
determined and the time each is to take will be set.

A popular and easy to use technique for scheduling is the use of Gantt charts. Gantt charts
reflect time estimates and can be easily understood. Horizontal bars are drawn against a time
scale for each project activity, the length of which represent the time taken to complete. Letters
or symbols can also be added to the left of each bar to show which other activities need to be
completed before that one can begin.

1. Gantt Charts

A Gantt Chart is a simple technique that can be used to attach a time scale and sequence to a
project.

A Gantt Chart is a form of horizontal bar chart and horizontal bars are drawn against a time scale
for each project activity, the length of which represents the time taken to complete. To construct
a Gantt Chart the following steps are necessary:

1. Use the horizontal axis to represent time

2. Use the vertical axis to represent activities
3. Represent each activity by a horizontal bar of appropriate length
4. Take activity procedures into account by starting each activity bar to an appropriate point
along the time axis after its preceding activities. Normally the start point for an activity
is the earliest time that it could start after its preceding activities had finished.

It is possible to enhance the Gantt Chart in several ways. For instance the number of staff
required to do a task can be entered into the bar on the diagram.

Gantt charts, also commonly known as milestone plans, are a low cost means of assisting the
project manager at the initial stages of scheduling. They ensure that:

1. all activities are planned for,

2. the sequence of activities is accounted for,
3. the activity time estimates are recorded; and
4. the overall project time is recorded.
They are therefore a simple, rough and ready means of planning a project and assessing progress
and are sufficient for most simple projects.

However, where projects become complex, it becomes difficult to see relationships between
activities by using a Gantt Chart. For more complex projects Network Analysis techniques are
used.

Gantt charts also provide a summary of the project as a whole and can be used as a rough and
ready means of assessing progress at the project control phase. At any date, the project
manager can draw a dateline through the Gantt chart and see which activities are on-time, which
are behind schedule and generally record project status against plan.

Gantt charts, named after Henry L. Gantt, one of the pioneers of scientific management, are a
useful means of representing a schedule of activities comprising a project and enable the
operations manager to know exactly what activities should be performed at a given time and,
more importantly, to monitor daily progress of a project so that corrective action may be taken
when necessary.

To construct a Gantt chart, the various activities are listed on a vertical axis and the horizontal
axis is used to represent time. Activity precedencies are taken into account by starting a
horizontal bar to represent the next activity at an appropriate point after its preceding activities,
i.e. those activities which must take place before the next activity can start, have taken place.
Normally this would be at the earliest time that it could start after its preceding activities had
finished.

Example:

Suppose a project comprises five activities: A,B,C,D, and E. A and B have no preceding
activities, but activity C requires that activity B must be completed before it can begin. Activity
D cannot start until both activities A and B are complete. Activity E requires activities A and C to
be completed before it can start. If the activity times are A: 9 days; B: 3 days; C: 9 days; D: 5
days; and E: 4 days,

i. determine the shortest time necessary to complete this project.

ii. identify those activities which are critical in terms of completing the project in the
shortest possible time.

Solution:

The figure below indicates the form that a Gantt chart would take from the above information.

Activity A
Activity B

Activity C

Activity D

Activity E

Time

The above chart shows that activities A and B have no preceding activities and so can start right
away. Activity C requires Activity B to have been completed before it can begin. The chart is
then completed using such precedence relationships as listed in the question, with each
horizontal bar being proportional in length to the activity time that it represents.

Looking at the chart it is apparent that the project ends when activity E has been completed.

Working back in time from activity E the "steps" which are crucial or critical in order to ensure
that the project duration does not extend beyond the planned length are: E,C and B. The shortest
time in which the project could be completed from the given information is therefore 16 days.
The set of activities B,C and E which together determine the project duration are referred to as
the critical path through the chart.

Those activities forming the critical path can be highlighted on the Gantt chart to help the
operations manager to give priority to them if lack of resources mean that such decisions have to
be made.

It is important to realize though that activities not on the critical path can become so if they are
allowed to drift too far. How far could activities A and D drift before they affected the duration of
the project?

Provided the project is not too complex in its activity relationships or simply too big to be
mapped on reasonably sized graph paper, Gantt charts can be very useful tools for the project
manager and are graphically superior to the network analysis methods of CPM and PERT. They
allow the critical activities to be found, i.e. those activities which must be performed on time if
the project duration is not to increase, and any "slack" or "float" in the sequence of activities can
easily be shown.

2. Examples of Gantt charts

1. A project comprises the following activities:

Activity Immediate Activity

Predecessors Time (days)
A - 12
B - 6
C A 13
D A, B 12
E C, D 11
F D 13
G E, F 11

a. Construct a Gantt chart which will provide an overview of the planned project.
b. How soon could the project be completed?
c. Which activities need to be completed on time in order to ensure that the project is
completed as soon as possible?

2. A project has the following activity details:

Activity Immediate Activity Time

Predecessors (weeks)
A - 3
B - 4
C - 3
D C 12
E B 5
F A 7
G E, F 3
Draw a Gannt chart to represent the project; determine those activities comprising the
critical path; and estimate the project duration

3. The following information is available on a management project:

Activity Immediate Duration Staff Required

Predecessors (Days) (per day)
A - 3 6
B - 5 3
C B 2 4
D A 1 4
E A 6 5
F D 3 6
G D, E 3 3

At present you have nine staff available. Temporary staff can be hired at a rate of Ł100 per day.

1. Draw a Gantt Chart to show the shortest time it will take to complete the project.
2. If the project is to finish on time, how many temporary staff are required, and at what
cost?

3. Network Analysis
1. Introduction to PERT and CPM

The two most common and widely used project management techniques that can be classified
under the title of Network Analysis are Programme Evaluation and review Technique (PERT)
and Critical Path Method (CPM). Both were developed in the 1950's to help managers schedule,
monitor and control large and complex projects. CPM was first used in 1957 to assist in the
development and building of chemical plants within the DuPont corporation. Independently
developed, PERT was introduced in 1958 following research within the Special Projects Office
of the US Navy. It was initially used to plan and control the Polaris missile programme which
involved the coordination of thousands of contractors. The use of PERT in this case was
reported to have cut eighteen months off the overall time to completion.
 2. The PERT/CPM Procedure

There are six stages common to both PERT and CPM:

1. Define the project and specify all activities or tasks.

2. Develop the relationships amongst activities. Decide upon precedences.

3. Draw network to connect all activities.

4. Assign time and/or costs to each activity.

5. Calculate the longest time path through the network: this is the "critical path".

6. Use network to plan, monitor and control the project.

Finding the critical path (step 5) is a major in controlling a project. Activities on the critical
path represent tasks which, if performed behind schedule, will delay the whole project.
Managers can derive flexibility by identifying the non-critical activities and replanning,
rescheduling and reallocating resources such as manpower and finances within identified
boundaries.

PERT and CPM differ slightly in their terminology and in network construction. However their
objectives are the same and, furthermore, their project analysis techniques are very similar. The
major difference is that PERT employs three time estimates for each activity. Probabilities are
attached to each of these times which, in turn, is used for computing expected values and
potential variations for activity times. CPM, on the other hand, assumes activity times are
known and fixed, so only one time estimate is given and used for each activity. Given the
similarities between PERT and CPM, their methods will be discussed together. The student will
then be able to use either, deciding whether to employ variable (PERT) or fixed (CPM) time
estimates within the network.

PERT and CPM can help to answer the following questions for projects with thousands of
activities and events, both at the beginning of the project and once it is underway:

 When will the project be completed?

 What are the critical activities (i.e.: the tasks which, if delayed, will effect time for overall
completion)?
  Which activities are non-critical and can run late without delaying project completion
time?
 What is the probability of the project being completed by a specific date?
 At any particular time, is the project on schedule?
 At any particular time, is the money spent equal to, less than or greater than the budgeted
amount?
 Are there enough resources left to complete the project on time?
 If the project is to be completed in a shorter time, what is the least cost means to
accomplish this and what are the cost consequences?

3. Critical Path Analysis

The objective of critical path analysis is to determine times for the following:

 ES = Earliest Start Time. This is the earliest time an activity can be started, allowing
for the fact that all preceding activities have been completed.
 LS = Latest Start Time. This is the latest time an activity can be started without
delaying the start of following activities which would put the entire project behind
schedule.
 EF = Earliest Finish Time. The earliest time an activity can be finished.
 LF = Latest Finish Time. The latest time that an activity can finish for the project to
remain on schedule.
 S = Activity Slack Time. The amount of slippage in activity start or duration time which
can be tolerated without delaying the project as a whole.

If ES and LS for any activity is known, then one can calculate values for the other three times as
follows:

EF = ES + t

LF = LS + t
 S = LS - ES or S = LF - EF

Analysis of the project normally involves:

1. Determining the Critical Path. The critical path is the group of activities in the project
that have a slack time of zero. This path of activities is critical because a delay in any
activity along it would delay the project as a whole.
2. Calculating the total project completion time, T. This is done by adding the activity
times of those activities on the critical path.

The steps in critical path analysis are as follows:

a. Determine ES and EF values for all activities in the project: the Forward Pass through
the network.
b. Calculate LS and LF values for all activities by conducting a Backward Pass through the
network.
c. Identify the critical path which will be those activities with zero slack (i.e.: ES=LS and
EF=LF).
d. Calculate total project completion time.

4. PERT and Activity Time Estimation

The major distinguishing difference between PERT and CPM is the use of three time estimates
for each activity in the PERT technique, with CPM using only one time for each activity using
CPM.

The three time estimates specified for each activity in PERT are:

i. the optimistic time;

ii. the most probable time; and
iii. the pessimistic time.
The optimistic, most likely and pessimistic time estimates are used to calculate an expected
activity completion time which, because of the skewed nature of the beta distribution, is
marginally grater than the most likely time estimate. In addition, the three time estimates can be
used to calculate the variance for each activity. The formulae used are as follows:

Where:

o, m, p - optimistic, most likely, and pessimistic times

t - expected completion time for task

v - variance of task completion time

Knowing the details of a project, its network and values for its activity times (t) and their
variances (v) a complete PERT analysis can be carried out. This includes the determination of
the ES, EF, LS, LF and S for each activity as well as identifying the critical path, the project
completion time (T) and the variance (V) for the entire project.

Normally when using PERT, the expected times (t) are calculated first from the three values of
activity time estimates, and it is these values of t that are then used exactly as before in CPM.
The variance values are calculated for the various activity times and the variance of the total
project completion time (i.e. the sum of the activity expected times of those activities on the
critical path) is the sum of the variances of the activities lying on that critical path.

5. Probability Analysis

Once the expected completion time and variance (T and V) have been determined, the
probability that a project will be completed by a specific date can be assessed. The assumption
is usually made that the distribution of completion dates follows that of a normal distribution
curve.

Consider the example where the expected completion time for a project (T) is 20 weeks and the
project variance (V) is 100. What is the probability that the project will be finished on or
before week 25?
Answer: 0.69

6. Worked Examples on Networks

1. A project has the following activities, precedence relationships, and activity durations:

Activity Immediate Activity Duration

Predecessors (weeks)
A - 3
B - 4
C - 3
D C 12
E B 5
F A 7
G E, F 3

a. Draw a Gantt chart for the project.

b. Construct a CPM network for the project.
c. Identify those activities comprising the critical path.
d. What is the project's estimated duration?
e. Construct a table showing for each activity, its activity duration, earliest start time, latest
start time, earliest finish time, latest finish time, and the activity slack.

Answers:

c. C, D
d. 15 weeks

2. A project designed to refurbish a hospital operating theatre consists of the following

activities, with estimated times and precedence relationships shown. Using this
information draw a network diagram, determine the expected time and variance for each
activity, and estimate the probability of completing the project within sixty days.
 Activity Immediate Optimistic Most Likely Optimistic
Predecessors Time Time Time
A - 5 6 7
B - 10 13 28
C A 1 2 15
D B 8 9 16
E B, C 25 36 41
F D 6 9 18

3. An activity has these time estimates: optimistic time o = 15 weeks, most likely time m =
20 weeks, and pessimistic time p = 22 weeks.

a. calculate the activity's expected time or duration t.

b. calculate the activity's variance v.
c. calculate the activity's standard deviation.

4. A project has the following activities, precedence relationships, and time estimates in
weeks:

Activity Immediate Optimistic Most Likely Optimistic

Predecessors Time Time Time
A - 15 20 25
B - 8 10 12
C A 25 30 40
D B 15 15 15
E B 22 25 27
F E 15 20 22
G D 20 20 22

a. Calculate the expected time or duration and the variance for each activity.
b. Construct the network diagram
c. Tabulate the values of ES,EF,LS,LF and slack for each activity
 d. Identify the critical path, and the project duration.
e. What is the probability that the project will take longer than 57 weeks to complete?

5. The project detailed below has the both normal costs and "crash" costs shown. The crash
time is the shortest possible activity time given that extra resources are allocated to that
activity.

Activity Immediate Normal Normal Crash Crash

Predecessors Time Time Cost Time Time Cost
(Ł) (Ł)
A - 5 2 000 4 6 000
B A 8 3 000 6 6 000
C B 2 1 000 2 1 000
D B 3 4 000 2 6 000
E C 9 5 000 6 8 000
F C, D 7 4 500 5 6 000
G E, F 4 2 000 2 5 000

Assuming that the cost per day for shortening each activity is the difference between crash costs
and normal costs, divided by the time saved, determine by how much each activity should be
shortened so as to complete the project within twenty-six days and at the minimum extra cost.

4. Management of Projects

Gantt charts, PERT, CPM and other scheduling techniques have proven to be valuable tools in
the management of large and complex projects. A wide variety of software packages is
available for project managers, for use on micro- or larger computers, to assist in the handling of
complex network problems. PERT and CPM, however, cannot ever purport to be able to solve
all project scheduling and management problems in service or manufacturing industries. Good
management practices, clear responsibilities for tasks, and accurate and timely reporting
systems are the most essential qualities for successful project completions. The watchword is
that useful as these techniques are, they are only tools to assist the manager in making better,
more calculated decisions in the process of conducting large scale projects.

1. The Process of Project Management

Traditional approaches to project management have emphasised the procedures involved. This
reflects an idea of project management which has emphasised physical resources and the use of
analytical techniques such as network analysis. Another approach which has been found to be
effective is much more people and organisation oriented and can be broken down into a series of
steps:

a. Clarifying the nature of the project

b. Defining goals and objectives
c. Feasibility studies
d. Detailed organisation of the project:

o Project definition

o Planning and scheduling

e. Project implementation and control

We can have a look at these in turn.

1. Clarifying the nature of the project

The following need to be established at the planning stage of the project:

o Resourcing,
o management support,

o nature of team working; the balance, for example, between creativity and
implementation skills,
o clarity of objectives.

2. Defining goals and objectives

The success criteria for the project need to be defined. We have already seen that there could
be hard or soft.

3. Feasibility Studies
The basic questions to be asked are:

o Is the project feasible?

o How feasible are the alternatives under consideration?

The aim of the study would be to carry out a preliminary investigation which should help to
determine whether the project should proceed further and how it should proceed.

The relevance of this approach will vary with the nature of the project itself. The more concrete
the project is, the more likely that there will be established procedures in relation to feasibility.
At the other end of the scale there will be less need for a feasibility study for an open project.

The project manager responsible for conducting the feasibility study would normally consider:

a. Cost: is this within the budget set by the organisation or within the capabilities of the
organisation to finance it? How do the alternatives compare?
b. Timing: are there specific constraints on timing and is it possible to complete the
project within these constraints?
c. Performance: will the project satisfy performance criteria which have been
determined? Basically this means will it do the job it is designed to do?
d. Effect on the organisation: is it feasible in the context of the organisation and the effect
which it will have upon it?

We should have a look at these factors in a little more detail.

a) Cost factors will be looked at through a financial appraisal. This should be related to
financial criteria which have been determined. You need to consider whether the
following criteria are relevant.

i. Capital expenditure implications:

o What are the costs of the project?

o If there are alternatives, what are the relative figures?

 o What effect will this have upon the organisation's finances particularly the capital
budget?
o How will it fit with controls imposed upon the organisation by central
government.
o How will the expenditure be financed? What are the alternatives?

ii. Revenue implications:

o How much will this cost both in the current year and in subsequent years?

o What are the likely gains in terms of income?

o What effect will this have upon the revenue budget?

The answers to these questions will determine the financial criteria upon which the
feasibility will be judged.

b) Timing: the project schedule may need to comply with specific criteria which have
been laid down. Timing can be important:

 to comply with legal or governmental requirements. For example, new legislation or new
requirements may need to be implemented by a certain date;
 for operational reasons. A new system may be required as a matter of organisational
policy or to fit in with existing procedures and deadlines;
 to assist with financing arrangements. Grants or borrowing approvals may need to be
spent within a specific period;
 to give the organisation an edge over its competitors.

c) Performance specifications: these may be:

 technical
 service based
 resulting from external regulations
 required by clients and customers

d) Organisational context:
  What is the policy of the organisation?
 Organisational culture; does the project fit in with the general values and beliefs of the
organisation?
 How will it affect resourcing? (Are the skills, technology and physical space available?)
 How will the project fit in with existing procedures? What effect will it have upon
systems?

The actual questions asked and the shape of the study and the consequent report will depend
upon the type of project being investigated.

Activity

Examine a live project in your own organisation. Make a list of questions that should be asked
in relation to feasibility.

1. Feasibility Report

The project manager will be responsible for reporting on feasibility to the sponsoring decision
makers or stakeholders.

This may be done in a variety of ways and with different degrees of formality. Typical contents
would include:

 project definition covering goals and objectives

 general background and introduction with an outline description of the options
 a clear definition of success criteria or feasibility criteria
 findings of the feasibility study
 financial appraisal
 preliminary compliance
  organisational suitability
 the plan for the management of the project including implementation

Summary

Feasibility is principally concerned with:

o cost
o timing

o performance

o organisational factors

4. Detailed Organisation of the Project

1. Project Definition

This begins once the project has received formal approval to proceed. Its purpose is to formally
document the objectives of the project and decide how the work will be undertaken. The
Project Manager will carry out this work, in consultation with the Project Sponsor, and Sub-
Project Manager where there are sub-projects.

Large projects may be divided into sub-projects, with each sub-project requiring its own sub-
project definition.

1. Ensure that Prerequisites are in place. Before definition can begin you should have:

o a Project Brief signed off by all parties involved in the project

o authority to proceed

o a Project Sponsor

o a Project Manager

1. Clarify Objectives.
Objectives must be achievable by the project alone, and must be measurable.

2. Determine Project Scope.

Determining the scope of the project helps to clarify objectives and set the boundaries
of the project. It is often useful to state limitations i.e. what the project will not cover.

3. Determine Work Structure.

Large projects can be better controlled, and are therefore more likely to be successful, if
they can be divided into smaller units of work (sub-projects).

Identify tasks which can be arranged into logical groups to form sub-projects. Grouping
could be on the basis of (for example):

 tasks relating to one functional area,

 tasks to be performed by staff in one geographic location,
 tasks relating to a particular deliverable,
 tasks to be performed by team members belonging to the same Division or Department.

5. Identify the Major Project Milestones

Milestones are significant events in the life of the project, such as installation of
hardware or completion of training. They are used in tracking project progress.

Dates will be added to these during Planning.

6. Ensure Project Structure and Responsibilities are Established

Assign Sub-project Managers where appropriate. Clarify composition and

responsibilities of Project Steering Group, and responsibilities of Project Sponsor and
Project Manager.
 Produce a project organisation structure to show reporting lines.

7. Determine Management Systems

These will vary according to the size and nature of the project but should always include:

 a progress control system for recording planned and actual times. This could be an
automated system or a manual one,
 acceptance procedures for formal review and agreement of each project deliverable
 scheduled management checkpoints

If the project is divided into sub-projects it is important that consistent management

systems are used across them all.

8. Document the Project Definition

The results of Project Definition must be documented and distributed for

agreement to:

 Project Sponsor
 Steering Group members (if applicable)
 Sub-project managers
 Line managers who are contributing significant resource to the project

The precise format of the document is left to the discretion of the Project Manager. However
the following topics should be covered:

 Goals and Objectives

State the business goals and the project objectives.

 Work Structure and Scope

A high level description of the work to be performed including:

 a brief statement of the current business situation and the changes which the project is
intended to bring about
 a list and brief description of each sub-project
 key events in the project i.e. the Major Milestones

 Organisation and Responsibilities

Include an organisation chart, names and responsibilities.

Highlight any functions or responsibilities peculiar to this project.

 Risks and Assumptions

List and briefly describe each identified risk. Give an indication of its severity i.e. the
probability of its occurrence and the impact on the project if it does occur.

 Management Systems

Outline the systems to be used for tracking and control of the work.

 Potential Problems

List any other outstanding issues which might affect the project, and any actions being
taken to resolve them. Include details of who is responsible for the action and the
completion date.

 Appendices

The Project Definition document will first be issued as a draft. Once the Sub-Project
Managers have completed Sub-project Definition their reports can be added as
appendices. The Sub-project Definition should include Objectives, Work Structure and
Scope and Organisation.

The whole document will normally be only a few pages. For very large projects, where
the document exceeds about a dozen pages, it may be helpful to include a Management
Summary as the first section.

2. Project Planning and Scheduling

Project Planning begins as soon as Definition allows. The process involves planning sub-
projects first and hence Definition must at least have identified the sub-projects and the major
tasks involved in them.

From this point, Planning and Definition tend to continue in parallel as a series of iterations,
gradually refining and hardening both Definition and Plans.

The purpose of the Project Plan at this stage, is to provide detailed realistic estimates of time,
duration, resource and cost, and planning should be carried out only in sufficient detail to allow
this to be achieved. Detailed planning for allocation of tasks to individuals is carried out
progressively as the work proceeds.

Where there are sub-projects these should be planned first and then combined to produce the
overall project plan. Produce a plan for each sub-project, or for the total project if there are no
sub-projects as follows:

1. Identify Major Activities

Break the work down into activities of the order of 20-50 days of effort, ensuring that
milestones correspond to completion of one or more of these. In practice the
achievement of a milestone is usually a good basis for identifying an activity e.g. 'prepare
and perform user training'.

2. Identify and Chart Dependencies

Produce a network chart for the sub-project showing dependencies between the major
activities and dependencies on other sub-projects or external events.

3. Estimate Effort and Duration

Estimate effort and duration of each major activity.

4. Provide Contingency
 At this stage estimates are likely to be 'soft' and probably expressed in ranges, because
precise details of the work are not settled. Contingency needs to be allowed both on the
estimated effort and elapsed time because of:

 the likelihood of unforeseen work arising,

 the likelihood that tasks will take longer than expected,
 the likelihood of changes to requirements or plans before publication. (Subsequent
changes should be processed through Change Control).

Contingency provision should remain evident in plans (probably as one or more

contingency 'tasks'). This provision should then progressively be removed from plans
during Tracking and Control as a result of either:

 being used up by e.g. tasks taking longer than planned,

 or reaching a point where uncertainty is reduced such that a part of contingency provision
can safely be deleted. This usually means the deletion of contingency allowed, but not
used, on tasks now completed.

5. Schedule Major Activities

Determine start and end dates for each major activity and produce a bar chart or other
diagram, showing relationships between activities.

6. Calculate Resource Requirements

Calculate requirements for each time period. Identify needs for each resource type (e.g.
systems analyst, user staff) and identify needs for special skills or scarce resources.

7. Calculate Costs

Calculate costs for the sub-project. This should include 'hardening up' items such as
cabling, training etc., for which an order of costs had been produced previously.

8. Determine Overall Costs and Benefits of the Project

 The cost/benefit justification should have already been stated in the feasibility study.
This stage provides the opportunity to review the case in the light of more detailed
information.

9. Document the Project Plan

Once a viable plan has emerged (i.e. conflicts have been resolved, resource availability
has been confirmed etc.) the Project Manager should produce the Project Plan covering:

 Project Schedule. This should show major activities by sub-project on a bar chart or
other diagram. The chart should also show project milestones and target dates. Show
contingency as a single provision at the end. Include an overall project network showing
the critical path. Narrative explanation may be included for clarification.
 Major Checkpoints and Reviews. List the dates of Checkpoint Reports, Checkpoint
Meetings, Steering Group Meeting and the Post-Implementation Review.
 Deliverables. List the major products of the project with delivery dates and acceptance
procedures.
 Resources. Summarise the resource needs from the sub-project plans.
 Costs and Benefits figures. Revise and refine as a result of completion of Definition and
Planning.
 Potential Problems. List any risks, problems or assumptions which may jeopardise the
Plan, together with actions needed to correct the situation.
 Appendices. Any useful supporting information including Sub-project Plans may be
included.

10. Ensure Management Systems are in place.

5. Project Implementation and Control

The role of the project manager falls into three areas:

i. Management of stakeholders
ii. Management of the project life cycle
iii. Management of performance
An approach needs to be developed for each of these. Control and monitoring procedures need
to be put in place and appropriate information systems developed.

The procedures which are put into place can only be successful if:

 there is satisfactory information to enable the team to manage the project effectively;
 they are simple and easy to operate and understand;
 they have the full support of the project team.

How should this relate to the three categories referred to above?

i) Management of stakeholders:

Stakeholders' interest must be monitored to ensure that:

 their interest and support is maintained;

 their views and ideas are being adequately reflected in the project development;
 their personal success criteria are being pursued and achieved;
 environmental change is fully taken into account.

ii) Management of the project life cycle:

This is probably the most conventional view of project control. Feedback systems need to be set
up to monitor key areas.

Activity

For a project that is already underway in your organisation, identify the key areas requiring
monitoring and suggest the kind of information and procedures that would be involved.

Suggested Answer
The key areas would be as follows:

 The project timetable, with particular reference to critical event times and potential
bottlenecks. There should be feedback on activity times achieved and their effect on the
whole project. If network analysis is used, then it is vital that the network is reworked
and updated to take into account the actual performance achieved.
 The project budget; budgetary control procedures can be used as in respect of any other
form of budget.
 Quality and performance standards; these need to be monitored against the original
project specification subject to changes agreed with stakeholders in the course of project
development.

Where possible this should all be done through positive reporting which will required action to
be taken.

iii) Management of performance:

This is the least tangible but possibly the most important of the three categories. How it is
tackled will depend upon what kind of project is being carried out.

It is unlikely that the project team will spend all of their working time together in close
proximity and under the direct supervision of the project manager. It is much more likely that
they will work apart most of the time, only meeting up occasionally and only meeting with the
project manager from time to time. Control issues that need to be considered therefore would
be:

 How to get the best out of the team when they are together. If you are holding meetings
then they should be purposeful and effective. They should not simply be part of the
routine. Having said that, they may be an important element in binding the team together
and in developing a team approach to planning and monitoring of performance.
 Ensuring people work when the team is apart. You need to set people realistic deadlines
and ensure that they see the importance of their contribution and that their contribution is
fully valued.
 Communications are important in terms of disseminating information and keeping
everyone informed. There are views that team members should be given information on
a need to know basis but this approach can cause problems.
  Ensuring continuing commitment by the team and adherence to the values and beliefs
being pursued by the team.
 Change, in particular, needs to be communicated to team members quickly and
effectively.

It is important to stress once again the need to look at the team and also for the project leader to
look inwards at his or her own performance.

2. Funding the Project

This will be determined by:

a. The nature of the project

b. The nature of the organisation

1. The nature of the Project

A major capital scheme will call for a large injection of new finance into the organisation. A
management project can often be managed by using existing staffing resources. However it
should not be forgotten that there is an opportunity cost to this.

2. The nature of the organisation

Companies can use a variety of resources for capital projects.

 Share issues
 Long term loans
 Leasing

The ability of companies to raise finance will depend upon the perceptions of lenders of money.
Public Sector organisations are often restricted in their sources of finance by government
regulations.

5. Human Factors
Gantt charts, PERT, CPM and other scheduling techniques have proven to be valuable tools in
the management of large and complex projects. A wide variety of software packages is available
for project managers, for use on micro- or larger computers, to assist in the handling of complex
network problems. PERT and CPM, however, cannot ever purport to be able to solve all project
scheduling and management problems in service or manufacturing industries. Good
management practices, clear responsibilities for tasks, and accurate and timely reporting systems
are the most essential qualities for successful project completions. The watchword is that useful
as these techniques are, they are only tools to assist the manager in making better, more
calculated decisions in the process of conducting large scale projects.

So far little mention has been made of the human issues involved in the management of projects.
These issues will now be addressed.

Group Discussion:

 Discuss the qualities you would look for in appointing a project manager.
 What factors would you take into account when selecting members of a project team, and
how would you motivate them if you were the project manager?
 Discuss any project with which you have been involved from the point of view of the
projects objectives and constraints, its management and implementation including the use
of planning, scheduling and controlling techniques, any problems encountered and how
they were dealt with.

1. Human Factors in Project Management

Dinsmore uses the following definitions for projects and project management:

A project is a unique venture with a beginning and an end, conducted by people to meet
established goals within parameters of cost, time and quality.

Project management is the combination of people, systems, and techniques required to

coordinate the resources needed to complete projects within established goals.
It is all too easy to form the view that project management and network techniques such as CPM
and PERT are one and the same thing. Because networks are valuable tools for graphically
showing relationships between project activities, pinpointing critical activities and for estimating
the probability of project completion by a certain date, some managers believe that they
constitute the only important management tool in the planning, scheduling and controlling
phases of a project. No project is managed effectively without a good Gantt/CPM/PERT
approach but equally there are other management tools and practices required for effective
management of projects.

Group discussion point:

Outline the difference between Project Management and Operational or Functional

Management.

2. Motivation

Human motivation is a complex issue and a great deal of research has been done on how best to
motivate employees of an organisation to achieve good performance.

The term "Motive" has a dictionary definition of: “causing motion: concerned with the initiation
of action”, and "Motivate" has the definition: “to provide with a motive, to induce.”

Various managerial strategies have been adopted to motivate people within an organization, and
they are often categorised under the headings:

 Paternalistic,
 Scientific,
 Participative.

Paternalistic strategy assumes that simply by belonging to an organization with whose aims and
objectives an employee can identify, that employee will be sufficiently motivated to perform well
for the organization.
Scientific management, as championed by F. W. Taylor, is of the carrot and stick variety and is
based upon the assumption that motivation can be directly linked to reward for good
performance and a lack of reward for a poor performance. The reward is tangible and

in the form of increased payment.

Participative management is based upon the theory that if an employee is given an objective then
he or she should be left to sort out the best method of achieving that objective without being told
what to do by "the boss". [See also the Introduction to Vroom Vroom & Deci, Management and
Motivation, Penguin, 1989].

Group discussion:

From your experiences at your company or organization, which of the

above characterisations best represents its management style?

Whatever strategy adopted, they are all based upon the premise that “performance = ability
times motivation”, i.e. that more competent and the more motivated an employee the greater
will be his/her performance.

3. Motivation Theory

To motivate is rather more than giving a reason for doing something. It is the creation of a keen
enthusiasm or desire in a person for the achievement of a particular objective or set of
objectives. Because human beings have free-will and have a great many other influences acting
upon them, it is not surprising that motivation is a complex issue.

One very important quality needed by a project manager is the ability to motivate the project
team. Different people respond to various techniques of persuasion in sometimes very different
ways, and it is necessary to know how to approach a particular individual, or group of
individuals, in order to optimise your likelihood of success in motivating them into appropriate
action.

4. Maslow

One field of psychology that considers human motivation theory is that of EXISTENTIAL
PSYCHOLOGY or HUMANISTIC PSYCHOLOGY, and one of its best known proponents is
Abraham Harold Maslow (US. Psychologist (1908-1970).

Existential psychology emphasises that each individual is constantly making choices, great and
small, which cumulatively determine the kind of person he/she becomes. It is concerned with
the individual's attempts to discover a satisfying sense of personal identity and to give meaning
to his/her life. As well as Maslow you may wish to look at the work of Rollo May, and Carl
Rogers.

Humanistic psychology is another term for existential psychology and which is critical of those
schools of psychology which are preoccupied with "Statistics, white rats and computers"
preferring instead to concentrate upon the individual from an existential viewpoint. [Further
reading: F. T. Severin (Ed.), Humanist Viewpoints in Psychology, New York, (1965)].

1. Maslow's Theory of Human Motivation

Maslow's theory is based on the idea that there is a hierarchy of basic human needs. He
organised these into five categories:

 physiological needs
 safety needs
 love
 esteem
 self actualisation.

These are sometimes represented in the literature as a pyramid with the more basic needs at the
bottom.
Maslow uses the work prepotent to indicate those needs which prevail over the others. So the
more basic the unfulfilled need, the more prepotent it is as a motivator, and so on.

For example a person dying from hunger or thirst is unlikely to be highly motivated by the need
for the esteem or respect of his colleagues.

Maslow makes the point that only needs which are unsatisfied are motivating factors. Satisfied
needs are not.

Discussion point:

What relevance, if any, does Maslow's approach have for the management of

projects within your organization?

5. Project teams

As we have seen, the management of a project involves rather more than just the mastery of
Gantt charts, network analysis and other mathematical techniques. It includes the creation and
management of a team of people who are given the task of handling the project from its
inception to successful completion.

The benefits of effective teamwork are clear to those who have experienced the synergy created
by a team who work together well, who cooperate with each other, and who are all committed to
the project.

Synergy is the state in which the team 'takes off', working together as a whole to achieve far
more than the individuals, working separately, could have done.
The opposite of such a synergistic grouping is sometimes called dysfunctional conflict - the
unpleasant state when everyone seems to be wilfully at cross purposes with everyone else, and
the group achieves much less than the individuals working separately, could have done.

An effective team is more dependent upon the chemistry between the members of the group than
a strict matching of the various roles suggested by Belbin et al. to the attributes of those group
members. Mutual trust is an effective lubricant to the effectiveness of team work.

Teamwork depends upon being able to persuade people to work together, to cooperate, and to be
committed to the project. By their very nature, projects are usually one-off situations and the
project team will usually be an ad-hoc matrix of individuals chosen for their specialist skills and
who may not be used to working together. The role of the project manager is particularly
challenging under these conditions.

Group Discussion:

Drawing upon your own experiences within your organization, discuss one example of
teamwork which you consider to have been successful, and one example which might have
been more successful than it was.

Group discussion:

In the previous discussion point can you separate out those factors which

might be thought of as internal ones, and those which might be considered

external factors.

6. The project manager

Source: Project Management - A Managerial Approach, Jack Meredith and Samuel
Mantel, Wiley, 1995.

The prime objectives of project management are performance, cost and time [Meredith, 1995].
Clearly there is a relationship between these three objectives, and there may be trade-offs
between them to be managed by the PM.

“...the PM is expected to integrate all aspects of the project, to ensure that the proper knowledge
and resources are available when and where needed, and above all to ensure that the expected
results are produced in a timely , cost-effective manner” [Meredith, 1995, p.4].

Chapter 3 of [Meredith, 1995] is concerned with the Project Manager and they discuss in section
3.1 the differences between a functional manager and a project manager. A functional manager
being defined as a person in charge of a functional department such as marketing, engineering,
finance etc., within an organization.

They argue that the functional manager is likely to be a specialist in the area being managed, and
as such they are analytically oriented, so that when a technically difficult task is encountered
they know how to analyse and tackle it.

"As functional managers they are administratively responsible for how something will be done,
who will do it, and what resources will be devoted to accomplish the task."

By contrast, the PM is more likely to be a generalist, or non-specialist, with a wide background

of both experience and knowledge, and who is required to manage a number of diverse
functional areas, each comprising a group of specialists in their own fields. The PM's task then is
to bring together all the bits of the project together to form a coherent whole - i.e. the PM must
be more skilled in synthesis, whereas the functional manager must be more skilled in analysis.
The authors argue that the functional manager uses an analytical approach whereas the PM uses a
systems approach.
The analytical approach would break a system down into smaller and smaller parts, but the
systems approach is one which attempts to understand the links between the components, as well
as the components themselves, on the basis that the links between components are as important
in determining the systems performance as the components themselves. In order understand the
system better, it is necessary to understand the environment (or larger system) of which it is a
part.

The authors maintain that the adoption of the systems approach is crucial for project
management, with an understanding of the organisational programme of which the project is a
part, and the organization in which the programme exists, as well as the environment within
which the organization operates.

On page 111, the authors suggest another difference between the functional an project managers.
The functional manager is a direct, technical supervisor, whereas the PM is a facilitator. The
facilitation of co-operation between those who have various kinds of specialised knowledge and
those who need it.

Three questions face the PM at the outset of a project:

 What needs to be done?

 When must it be done?
 How are the resources needed by the project to be obtained?

It will have occurred to you that the PM will often be reliant upon functional managers for
answers to these questions, and for other specialist inputs and it is often the case that the
functional managers will make some of the fundamental and critical project decisions. For
example they may select the people who will be responsible for carrying out the project, and may
develop the technological plan detailing how to accomplish the project's goals, as well as
frequently influencing the precise deployment of the projects resources. It is this separation of
powers between functional and project management that on the one hand makes for a successful
outcome to the project, but on the other is a source of discomfort for both.

"Note that the PM is responsible for organising, staffing, budgeting, directing, planning, and
controlling the project. In other words, the PM manages the project, but the functional managers
may affect the choice of technology to be used within the project and the specific individuals who
will do the work." [Meredith, 1995, p.111-112.]

Clearly a good project manager will attempt to influence by negotiation or other means the
choice of specific individuals making up the project team, and the PM cannot allow the
functional manager to usurp control of the project, since if this happens the project is likely to
become secondary to the work of that functional group and consequently the project is likely to
suffer. Equally the functional manager cannot allow the PM to usurp his/her authority when it
comes to making technical decisions in the functional area, or indeed to the assignment of duties
to personnel within that functional department or section.

Another very real problem faced by the project manager is that of micromanagement. This is the
unhappy state of affairs created by the PM's line manager taking over the PM's job by exercising
extremely close supervision over every action the PM takes, or will tell the PM precisely what to
do. See box below for quote from page 112 of Meredith and Mantel:

At times, a senior manager ( the PM's immediate superior) will, in effect, take over the PM's job
by exercising extremely close supervision over every action the PM takes, or will actually tell the
PM precisely what to do. All of the powers normally delegated to the PM are withdrawn and the
PM's boss runs the project. This condition is known as micromanagement. It stamps out any
creativity or initiative from the PM or project workers, frustrates almost everyone connected with
the project, and generally ensures mediocre performance, if not failure. The senior rationalises
the need for control with such statements as: "After all, the project is my responsibility," or "You
must understand how important this project is to the firm," or "Superboss expects me to keep my
eye on everything that goes on around here."

Such nonsense sounds logical until subjected to analysis. The first comment denies the virtue of
delegation. The second assumes that everyone except the speaker is stupid. The third is an
indication of the self-importance of the superior. To be frank we do not know how to cure or
prevent micromanagement. It is practised by individuals who have so little trust in their co-
workers that they must control everything. Micromanagers are rarely likeable enough for anyone
to try to help them. Our considered advice to PMs who are micromanaged is to request a
transfer. [Meredith, 1995, p. 112]
Guidelines for Managing Projects

 Set a clear Goal

 Determine the Objectives
 Establish Checkpoints, Activities, Relationships, and Time estimates
 Create a Schedule
 Develop people individually and as a team
 Reinforce the commitment and excitement of people
 Inform everyone connected with the project
 Vitalise people by building agreements
 Empower yourself and others
 Risk approaching problems creatively

Source: Randolph and Posner, Getting the Job Done! Managing Project Teams and Task Forces
for Success, Prentice-Hall, 1992

Group Activity

Using the approach outlined by Dick McCann (in How to Influence Others at Work, Heinemann,
1989) and using your perceptions of your colleagues determine which category of team role each
member of your team fits best.

Use the templates provided to tick each perceived attribute for each of your colleagues, and
present them with the completed templates.

On receipt of your templates, count up the ticks under each category and see which one has the
most ticks.

Team Roles
Explorer-promoters Assessor-developers Thruster-organizers
Outgoing Outgoing Determined

Enthusiastic Analytical Action-oriented

Warm Experimenter Disciplined

Talkative Idea-developer Tough

Stimulating Challenge-seeker Independent

Imaginative Sociable Logical

Impulsive Organizer Decisive

Excitable Pragmatic Factual

Persuasive Logical Commanding

Opinionated Planner Impatient

Emotional Product-champion Task-oriented

Far-sighted Talkative Stubborn

Dramatic Group-worker Competitive

Risk-taker Expressive Conflict-confronter

Concluder-producers Controller-inspector Upholder-maintainer

Steady Conservative Beliefs-based

Reliable Quiet Quiet

Effective Practical Supportive

Efficient Logical 'Defender of the faith'

Dependable Detail-oriented Conscientious

Finisher Thorough Traditional

Organized Accurate Reserved

Systematic Conscientious 'Long fuse'

Practical Dependable Conflict-avoiding

Deadline-conscious Reserved Controlling

Crisis-hardy Critical Advising

Change-resistant Distant Consensus-seeking

Present-oriented 'Nit-picker' Self-effacing

Reporter-advisers Creator-innovators
Helpful Imaginative

Kind Intuitive

Well-liked Independent

Thoughtful 'Head-in-the-clouds'

Knowledgeable Researcher

Supportive Innovator
Tolerant Information-seeker

Easy-going Procrastinating

Information-gatherer Absent-minded

Willing Non-finisher

Cooperative Deadline-misser

Soft Future-oriented

Conflict-avoiding Flexible

Procrastinating Idea-generator

Principled Visionary

Guide to Strategic Pacing

Team Role Dos Don'ts

Explorer- Explore ideas Don't talk about details
promoter Allow them to talk
Give `positive' strokes Don't take issue with their opinions unless they
Concentrate on the future persist
Be enthusiastic
Record important agreements in writing Don't dwell on the past
Be flexible
Assessor- Be prepared Don't talk about subjects you know little about
developer
Analyse issues fully Don't give too many opinions

Don't waste time

 Explore possibilities

Be factual

Speak clearly, logically and precisely

Think laterally
Thruster- Be businesslike Don't attack personally but focus on the facts
organizer surrounding disagreements

Be factual
Don't be ambiguous
Be goal-oriented

Give incentives Don't get off the subject

Be punctual

Makes things happen

Summarize regularly
Concluder- Be structured Don't change your mind too frequently
producer Don't `waffle'
Give notice of proposed changes

Be practical

Stick to your word

Keep to deadlines

Focus on results
Controller- Use memos to communicate Don't `drop in' unexpectedly
inspector
Send written information before meeting Don't surprise them

Don't be over-optimistic
Slow down your pace
Don't rush them
Take time to understand them
Don't concentrate on the future at the expense of the
past

Talk about details

 Think before you speak

Be practical
Upholder- Develop personal relationships Don't dominate discussions
maintainer Don't ignore their feelings
Be clear and precise

Encourage them to talk

Be supportive
Reporter-adviser Be flexible Don't put facts before feelings

Develop personal relationships Don't move too fast

Be cooperative Don't be insincere

Give personal thanks

Establish harmony

Allow them to express their concerns

Creator- Explore ideas Don't be too structured
innovator
Be enthusiastic Don't force them into difficult deadlines

Don't be too convergent in your thinking

Ensure you have some knowledge of the

area under discussion

Give personal thanks

Tolerate their disorganized ways

Record important decisions in writing